Category Archives: For Seniors

Here’s what we know: we know that the retirement savings crisis is enormous; by some estimates, Americans are under-saved by up to $14 trillion.

We know that this number, as large as it, may in fact be understated, because it assumes Social Security and Medicare solvency…..a big if. We know the solutions to this problem are generally assumed to be a real negative for the economy. As a result, the challenge is so significant and the possible solutions so unpalatable that we are frozen on this problem.

But here’s the dot that few have connected: the retirement savings crisis is also a woman’s crisis.

By looking at this issue through this additional gender lens, the possible solutions take on a decidedly different character.

They become less about an inevitable, looming wealth transfer and much more about increasing the economic engagement of women. At the same time, the national discussions we’ve been having about advancing women in the workplace shift as well; they move from we-should-do-this-because-it’s-the-fair-thing-to-do to we-should-do-this-because-it-helps-solve-a-ridiculously-large-problem.

Unfortunately, there does not then follow a single “soundbite,” pop-culture answer; it’s certainly not as simple as telling women to try harder or to “fix” them so that they act more like men.

Instead it’s about making the investment in shifting the workplace as we know it to a more inclusive, more modern one. It is thus less about changing the women and much more about changing the workplace.

A good place to start is by fully valuing the work of women by closing the gender pay gap (which is, after all, the law of the land); this would in turn close the Social Security savings gap by a third, according to Social Security Works. That’s because those higher earnings would in turn fund retirement plans and pay into Social Security.

A second avenue is instituting longer company-paid parental leaves. Many companies, including Google, have found that longer maternity leaves mean more mothers return to work after having children. Given that replacing a worker can cost from 150% – 200% of their salary, this can be a smart investment for the company. And again, over time, this drives higher retirement savings for the parent.

The same logic can hold at the public policy level. Indeed, were the United States to leave the ranks of Papua New Guinea as one of the few countries in the world without a government-mandated paid maternity leave, this would not just benefit those women pesky enough to have children; we would be investing in shoring up Social Security, enabling more people to pay into the system.

These actions will pay off in other ways as well. By some estimates, if women were fully engaged in the US economy, GDP would grow by up to 9%. That’s good for everyone. And multiple research studies show that companies with diverse leadership teams themselves benefit, outperforming others on an array of metrics, including higher returns on capital, lower risk and greater innovation.

In fact – and, to some, perhaps counter-intuitively – companies that adopt family-friendly policies are met with a positive reaction in the stock market, as it presumably forecasts positive returns from such policies and the more engaged workforce’s that result.

I recognize that it can be tough to make progress on diversity. I’ve seen this first hand. I recall one company at which I worked closing a worksite’s daycare center – and making the decision without analyzing the impact on employee absenteeism or turnover (which was significant). I remember the company having in place flexible work programs; but employees were nervous about accessing them, for fear that they would be viewed as less committed to their jobs than those who were putting in long hours of “facetime,” particularly in the aftermath of the financial crisis.

And while it’s been years since I witnessed overt discrimination, I often saw the subtle biases that “we need someone we can really trust in this important job” – and that someone was typically the mirror-image of the executive making the decision – “but next time we’ll be sure to put in a woman, or a person of color, or someone else who doesn’t look just like us.” But those individual decisions were allowed to win the day, again and again. And thus my old industry, Wall Street, has gone backwards on gender diversity, though I think there are few who would argue that was a desired outcome, given the financial crisis.

The road we are on today is to chip away at the gender issue bit by bit by bit. At this rate, we will achieve gender pay parity by 2058. But the discussions of the retirement savings crisis and the economic engagement of women should no longer be separate conversations; they are highly inter-related. And it’s not a question of whether we can afford to make the changes to get women more fully economically engaged….it’s a question of whether we as a country can afford not to. Oh, and it’s also the fair thing to do.

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Former secretary of HUD Henry Cisneros’ mom lived in the house she and her husband bought in 1945 until last month, two weeks after her 90th birthday, when she was hospitalized, and the doctor said it wouldn’t be responsible to let her go home because her disorientation and forgetfulness would likely result in another incident. Cisneros reluctantly helped her moved to a memory care facility, and the visits are wrenching. “The truth is she doesn’t want to be there; she wants to go home. She ends up crying, and I want to go out to the car and cry,” Cisneros said in his keynote speech at a conference on housing and aging yesterday.

Housing is the linchpin of our well-being, according to the AARP Foundation and the Harvard Joint Center for Housing Studies which held the conference in conjunction with the release of a new report,Housing America’s Older Adults—Meeting the Needs of An Aging Population. The experts explored the mismatch between the nation’s housing stock and Americans’ desire to age in place at home. And they issued a warning: as the baby boomers age and the number of Americans over age 85 swells (triples!) to 20 million by 2030, “our country must face the basic fact that we are aging and we are not ready,” Cisneros said.

Cisneros’ mom, Elvira, intended to live out her days in her 1920s bungalow in the West Side neighborhood of San Antonio, Texas where Cisneros was mayor before he headed the U.S Housing and Development Agency under President Clinton (he now heads housing developer CityView). Cisneros even held her up as a model of aging in place in his 2010 book “Independent for Life: Homes and Neighborhoods for an Aging America.”

Integrating housing and health services in new accessible multi-family buildings is one approach to the nation’s lack of affordable housing, but most Americans would rather stay at home, in a rocking chair on their front porch. (Photo credit: Wikipedia)

The reality is that for some people, you can age in place—but only up to a point. Most Americans live in isolated detached, single family homes in suburban or rural neighborhoods without access to transportation services. “The existing housing stock is unprepared to meet the escalating need for affordability, accessibility, social connectivity and supportive services,” the report concludes. The conference speakers offered a range of solutions. The audience favorite: Age-Friendly NYC’s program that enlists doormen (through the building services union) to refer tenants to city agencies and social services if they show signs of elder abuse or cognitive decline.

Here are some ideas for the rest of us.

Pay off your mortgage. More than 70% of homeowners aged 50 to 64 are still paying off their mortgages in 2010, with an average loan-to-value ratio of 56%. And 40% of homeowners aged 65 and over are paying off their mortgages, with an average loan-to-value ratio of 45%.

Trying to get to a situation where you’re not facing mortgage payments in retirement is key, says 53-year-old Chris Hebert, acting managing director of the Joint Center. Herbert said he’s aiming to pay down his home loan in the next 10 years. If your house is paid off, you can better handle property insurance, taxes, and day to day expenses, and have a cushion to pay for health care and caregiving services.

Renovate with universal design. “Where older people live now is likely where they’ll be living,” Herbert says, noting that people are making decisions about housing they’re going to occupy later in life in their 50s and early 60s. He tried to get his 63-year-old brother-in-law who was embarking on a major home renovation project to think ahead, but he didn’t do anything to make his house accessible. Nobody in the process—the architect or builder—egged him on to do so. One thing that allowed Cisneros’ mom to stay in her house as long as she did was ramps and an accessible bathroom that were originally installed for her late husband.

The five key features for an accessible home are: a no-step entry, single floor living, wide doorways, accessible electric switches and outlets, lever-style door handles and faucets. Only 21% of houses have at least three of these features.

Talk about who will help mom. Between 2015 and 2035, the number of people over the age of 75 living alone will nearly double from 6.9 million to 13.4 million, the majority of whom will be women. And the majority of those women will have caregiving needs. About one in four older adults has a cognitive, hearing, mobility or vision difficulty. By age 85, however, more than two in three adults face at least one of these difficulties.

The family care ratio is going in the wrong direction, notes Herbert, who says he pools resources with four siblings to care for his mom, but he and his wife have only two kids to eventually call on for caregiving support. And then there are the childless who will rely on friends and extended family to help them through old age. Of the youngest baby boomers, aged 50 to 59, 16% do not have children who might take care for them in older age, the Joint Center found.

“The Joint Center is often referred to as the Joint Center for gloom and doom,” Herbert jokes. But the message he hopes people will take away is that individuals and their families need to recognize these issues and take steps now to prepare.

We can help. Claire has an advanced degrees in helping Seniors with their future housing (Seniors Real Estate Specialists).

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Claire Richards is not only an Associate Broker, REALTOR®, but along with many other certifications, she also holds the ABR and SRES designations. So, what exactly are they? ABR stands for Accredited Buyer’s Representative and SRES stands for a Senior Residential Specialist.

As a SRES, Claire focuses on the what people need, not necessarily the places that are stereotypical for seniors. She makes it her business to learn all about the different communities so that she and her team can help her clients make good choices. Claire helps her clients research future retirement housing options, buy a second home that may become a full time residence in the future or sell the large family home and look for more appropriate housing that will provide years of comfortable living. Our younger clients include Boomers that are helping parents find more accessible housing so that they can continue to live independently.

About the SRES Designation:

• Working through a Realtor®, as your Buyer’s Agent, even one with an ABR and SRES certification generally costs you nothing. Whether you buy an existing home, a new home or a home in an Active Adult Community, any broker commission is paid at settlement out of the Seller’s proceeds. Exceptions may include a home listed For Sale by Owner.
• You will not pay less for a home in an Active Adult Community or any other new home community if you go to them directly without representation by your own REALTOR®, no matter what you may have heard.
• A Buyer’s Agent is responsible to his/her client – you. It’s my goal to help you find the right house at the right price for you and negotiate on your behalf.
• A sales person at any new home community is an employee of the builder and has one objective – to sell you one of their homes in that particular community. They will not tell you about another community in the area or one that is coming soon that may suit you better.

There is no one solution that fits everyone. Active Adult Communities are not the right answer for everyone in the target age group of 55+. It is a great option for many, and there are different communities to consider. Developing a client relationship with a qualified Seniors Real Estate Specialist is the best way to get all the information you need to make a good real estate decision for your future.

So when you are ready to think about buying a second/vacation home or a retirement home nearby or in a new town, it’s important to work with people that you trust and feel comfortable with, whatever your age or motivation. That includes not only a Realtor® to represent you, but also a financial advisor, mortgage consultant, an attorney, and other trusted advisors.